Why you should commence your Kilburn lease extension

Top reasons for lease extension now:

A Kilburn leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Kilburn residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kilburn property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Kilburn will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Kilburn with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not grant a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Kilburn?

The lawyers that we work with procure Kilburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Kilburn Lease Extension Case Studies:

Luke, Kilburn, North London,

Luke owned a 2 bedroom flat in Kilburn on the market with a lease of a little over fifty eight years unexpired. Luke on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.

Kilburn case:

In 2013 we were contacted by Dr Blake Cooper who, having acquired a garden apartment in Kilburn in January 2012. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar properties in Kilburn with an extended lease were in the region of £265,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out in 2089. Having 66 years remaining we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of expenses.